1) An ordinary annuity that earns 7.5% compounded monthly has a current balance of $750,000. The owner of the account is about to retire and has to decide how much to withdraw from the account each month. If he wants the payments to last for the next 20 years, what is the maximum amount that he can withdraw each month? At a minimum, show the formula that you are going to use, and show the setup of the problem.
2) What is the future value of an ordinary annuity at the end of 39 years if $450 is deposited each month into an account earning 7.15% annual interest compounded monthly? At a minimum, show the formula that you are going to use, and show the setup of the problem. Round your answer to the nearest dollar.